15.12.2011. He made advance payment of Rs.40,00,000/- in
the initial stage, and for the balance he issued four cheques
which were not presented to the bank by the respondent
because of a request made by the petitioner. On 20.12.2016,
the petitioner executed a memorandum of understanding
(MoU) acknowledging the past transaction of sale and
issued two cheques for the consideration he was due to
pay. The MoU dated 20.12.2016 is a new contract in
writing that came into existence according to section
25(3) of the Indian Contract Act. It was in this connection
that the cheques in question were issued and when they were
dishonoured, the respondent had to initiate action under
section 138 of N.I.Act. Therefore the cheques were issued in
connection with legally enforceable debt, and it was not a time
barred debt.
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